Setting up Pay Type Limit Rules for PFRS Tier 5 and Tier 6

Owned by Knowledge Assistant
Jun 28, 2023
2 min read
Description of Issue

The overtime limit for PFRS (Police and Fire Retirement System) Tier 5 and Tier 6 is a percentage of annual wages.  How do I setup the Pay Type Limit Rules?

Context
  • Payroll
  • New York
  • NY Employee Retirement RS2402 Report
  • NYSLRS Report
Cause

NYSLRS Overtime Limits are automated in EERP with the pay type limit functionality, which will move overtime earnings to a different pay code once the earnings limit is met.  The new pay code is excluded from the NYSLRS deduction codes to prevent contributions on those earnings and Crosswalked in the SLRS PAY Crosswalk Type to the NYSLRS Non-Pensionable Overtime Earnings Code NOT to report those earnings correctly in the NYSLRS Report.

Resolution
  1. You should have a unique overtime pay code for PFRS Tier 5 and Tier 6.  Use the Duplicate option in the Pay Master program from each unique pay code to create a new pay code for the non-pensionable overtime amounts.
  2. Update Crosswalk Type SLRS PAY to account for the new pay code(s) for the non-pensionable overtime.  Reference NYSLRS Reporting Setup.
  3. Use the Exceptions option in the Deduction and Benefit Master program to exclude the new pay code from all applicable NYSLRS deduction codes.   
  4. Use the Limit Rules option in the Pay Master program to create the rules that need to be enforced.  


Populating the Limit Rules: 

  1. From the Payroll Earning Limit Rules screen, select Add
  2. Populate the fields as follows:
    1. Limit Code - Enter a unique code to identify the limit rule you're creating.  Example: NPT5
    2. Short Description and Long Description Example: PFRS Tier 5 and NYSLRS PFRS Tier 5
    3. Frequency - Select Y - Calendar Year 
    4. Amount Type - Select P - Percentage of Annual Salary
    5. Click Yellow Folder next to Amount Type and define Pay Codes that count toward the sum of Annual Salary the percentage applies to. If no pay codes are entered here, EERP will use Employee Job/Salary base pay for Annual Salary Amount
    6. Amount - Enter the overtime percentage.  This will need to be updated each time the percentage value changes.  Example: 15.00
    7. UOM - Defaults to A - Amount
    8. Old Pay Type/New Pay Type - Enter the existing applicable overtime pay codes in the Old Pay Type column and the new applicable overtime limit pay codes in the New Pay Type column
    9. Non-Cash Gross Pay Type - Leave blank
    10. Limit Priority - Leave blank
  3. Click Accept 
  4. Repeat Steps 1 through 3 as needed.
Additional Information

Overtime Limits for Tier 5: https://www.osc.state.ny.us/retirement/members/overtime-limits-tier-5

Overtime Limits for Tier 6: https://www.osc.state.ny.us/retirement/members/overtime-and-earnings-limits-tier-6

Master Article - Setup for NYSLRS Overtime Limits